A Decrease in the Price Level Will Have a Direct

question 107

Multiple Choice

A decrease in the price level will have a direct effect on spending because

• A)people like to spend less when prices are lower.
• B)the real value of the money people have varies directly with the price level,and so does their spending.
• C)the real value of the money people have increases and they can buy more with it.
• D)the more money they have the more it is worth and the more goods and services they can buy.

---

Definitions:

Severe Depression

A serious mental health condition characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Electroconvulsive Therapy

A psychiatric treatment in which seizures are electrically induced in patients to provide relief from severe mental disorders.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, leading to a range of psychological symptoms.

Psychoanalytic

Pertaining to a theory of psychology which emphasizes the influence of unconscious processes and childhood experiences on behavior and mental states.